South African power company Eskom has officially launched its Renewable Energy Purchase Program.
The program invites large electricity users in South Africa to sign power purchase agreements (PPAs) with Eskom's renewable energy projects. The first round of bidding for the program launched last week, covering 291 MW of solar capacity.
Successful bidders will sign PPAs with Eskom for terms ranging from five to 25 years. Power will be supplied in phases from multiple Eskom projects, with the first project expected to reach commercial operation in December 2027. Applications for this round close on September 19th.
According to an Eskom statement, this procurement follows a previous call for expressions of interest, which saw strong interest from industrial and commercial users, demonstrating "clear market demand for direct access to green energy."
Eskom Group CEO Dan Marokane stated that the PPA is the next step in Eskom's strategy to connect more renewable energy to the grid.
"We are seeing strong market interest in Eskom's green energy supply capabilities, and this plan reflects that capability," Marocane added. "More than a year into our turnaround strategy, we are not only committed to ending power shortages but also transforming Eskom into a sustainable and competitive company that delivers security of energy supply through a customer-centric approach."
Data shows that South Africa added 1.1 GW of solar capacity in 2024, following a record year for solar capacity additions in 2023. South Africa has set a target of adding at least 3 GW of renewable energy annually, increasing this to 5 GW per year by 2030.
South African power company Eskom has officially launched its Renewable Energy Purchase Program.
The program invites large electricity users in South Africa to sign power purchase agreements (PPAs) with Eskom's renewable energy projects. The first round of bidding for the program launched last week, covering 291 MW of solar capacity.
Successful bidders will sign PPAs with Eskom for terms ranging from five to 25 years. Power will be supplied in phases from multiple Eskom projects, with the first project expected to reach commercial operation in December 2027. Applications for this round close on September 19th.
According to an Eskom statement, this procurement follows a previous call for expressions of interest, which saw strong interest from industrial and commercial users, demonstrating "clear market demand for direct access to green energy."
Eskom Group CEO Dan Marokane stated that the PPA is the next step in Eskom's strategy to connect more renewable energy to the grid.
"We are seeing strong market interest in Eskom's green energy supply capabilities, and this plan reflects that capability," Marocane added. "More than a year into our turnaround strategy, we are not only committed to ending power shortages but also transforming Eskom into a sustainable and competitive company that delivers security of energy supply through a customer-centric approach."
Data shows that South Africa added 1.1 GW of solar capacity in 2024, following a record year for solar capacity additions in 2023. South Africa has set a target of adding at least 3 GW of renewable energy annually, increasing this to 5 GW per year by 2030.
